Originally Posted by
Omegamanic
Yep, gearing/leverage - whatever term best fits :)
But for me, unlike investing in companies I’m not too close to, if the FTSE etc. for some reason, I prefer tangible things. Could be a mistake, and maybe I’d be better investing into the markets, but I can’t see the same type of steady returns, potential for capital growth, relatively security of knowing I could sell, in a buoyant/growing market - more people are starting to rent here due to the increased prices over recent times - plus being a small island it’s usually easier to be selective and have better knowledge of tenants, their employment etc.
Im thinking I should have probably bought a few years ago, but although it’s not the good ole days, I still see an opportunity in the BTL market here.
Ive virtually discounted flats, unless purpose built separate units, where you can own a whole block of 4-8 units. I had a few properties selected in Australia, and that was my initial plan when I was due to sell up here, build my farmhouse and own a couple of blocks of units that had great returns, well above the yields here (with some as high as 12-15%), although interest rates were a little higher slightly offsetting that.